We know the risks from a 'cashless society' - if government control your access to money, they know everything you do and they control your life.
So what we need to do (short term) is flip this!
Require the government to use a state crypto-token for all internal payments!
The treasury would mint/redeem tokens, tax would be paid in tokens and private sector suppliers would be paid in tokens.
Every penny of tax could be traced from taxpayer to external supplier - so ending fraud and abuse...